A mapped-out supply chain is becoming a must-have. First and foremost, this is due to recent regulations and legislations coming into effect, but the need for data is increasing all around. If you need to know what happens in your supply chain and report on it, you need to know where to look.
Challenges of Supply Chain Mapping
Beyond forms: Moving from Spreadsheets to Structured Systems
Expanding from a supplier list in Excel or a Supplier Relationship Management (SRM) system is not done overnight, nor is it easy. It takes a well-built structure, a place to systematically store information, and log relations between agents in your supply chain, collecting the data points needed. And not to mention – verifying the locations and data points collected.
Building a Foundation: Key Requirements for Effective Mapping
Mapping out your supply chain requires creating a structured approach that systematically stores information and logs relationships between different agents. This includes collecting all necessary data points and verifying them for accuracy.
How to get started with your supply chain mapping
Step 1: Identifying Key Data Points
Figure out what you need to know about the agents in your supply chain. Data points may include
- Location
- Contact information
- Products and/or processes
- Workforce
- Energy/Water/Waste
- Certifications, licenses, participation in compliance schemes
- Relations to other supply chain agents
Step 2: Begin with Direct Suppliers
Start out with the ones first in line: your direct suppliers. You will know your direct suppliers best, and therefore it is a good place to start. The first time you will learn some lessons, and most likely become aware of some blind spots or challenges. So, it's best to make adjustments before rolling out your data collection across your entire supply chain.
Step 3: Expanding Beyond Direct Suppliers
Get information from your direct suppliers on their upstream suppliers, so you can send out mapping assessments.
Tips for Successful Supply Chain Mapping
We have collected some recommendations based on our experience within supply chain mapping as we through the past years has been working closely with our customs.
Verification Measures
Build in safeguards, so you can verify the information you’re receiving. Using a system like Qarma, that would look like:
- Real-time images and videos
- GPS-location with coordinates
- Time-stamp
Risk Identification
Use the opportunity to identify risks by including data points related to social and environmental compliance.
Data Integration
Integrate data collection with a Business Intelligence (BI) system so you can utilize the data to make better decisions.
Regular Updates
Regularly send out mapping assessments to ensure your data is still valid and updated.
Benefits of Supply Chain Mapping
Regulatory Compliance
Staying compliant with incoming and active legislations such as:
- Digital Product Passport (DPP)
- European Deforestation Regulation (EUDR)
- Corporate Sustainability Due Diligence Directive (CSDDD)
- Corporate Sustainability Reporting Directive (CSRD)
- EU’s ban on products made with forced labour
Risk Mitigation and Resilience
The opportunity to mitigate and manage risks for more resilient supply chains and fewer threats to your company image.
Foundation for Future Reporting
Building a solid foundation for future reporting, both to comply with relevant regulations and to meet expectations from investors.
What's next
Mapping out your supply chain provides essential insights needed to comply with regulations, manage risks, and meet stakeholder expectations. It involves a systematic approach to data collection and verification.
By starting with your direct suppliers and expanding your mapping efforts upstream, you can ensure a resilient and compliant supply chain. Begin the process today to prepare for future challenges and opportunities.
